In partnership with
Most business owners look at their AR aging and see a list of invoices. What they miss is that this report can also tell you when cash is likely to arrive, which customers need immediate attention, and whether the next few weeks will feel comfortable or tight. When used correctly, your AR aging becomes a forecasting tool instead of a frustration.
Here’s how to use it effectively.
Group invoices by likelihood of payment
Do not treat all invoices the same. Current and recently due balances are more likely to pay than older invoices. This helps set realistic expectations.Factor in actual customer payment behavior
Ignore stated terms and focus on how customers really pay. If a customer consistently pays late, adjust your forecast accordingly.Assign payments to weekly buckets
Forecasting does not require exact dates. Group expected payments into weekly timeframes to create clarity without over-complication.
Build Your Online Fitness Business in 30 Days
Kajabi’s FREE 30 Days to Launch: Scale Your Fitness Business Online guide shows you how to create sustainable, recurring revenue through online programs, courses, memberships, and digital products.
Download the guide for a step-by-step roadmap, real success stories, and an exclusive offer for an extended trial with expert fitness trainer support.
Exclude invoices with open issues
Disputes, missing documentation, or billing errors should not be counted as near-term cash. These balances need resolution before forecasting.Update the forecast weekly and compare to reality
Review what was expected versus what actually came in. This improves accuracy over time and builds confidence in the numbers.Use the forecast to plan payables and spending
Knowing when cash is coming allows you to schedule vendor payments and protect liquidity. Forecasting turns reaction into planning.
Your AR aging already contains the information you need to understand cash flow. With a little structure and discipline, it becomes a reliable weekly planning tool instead of a static report.
If you want help setting this up quickly using the data you already have, reply to this message. I can help you turn receivables into predictable cash flow heading into 2026.
Sponsoring the Cash Flow Chronicles today is ROKU!
Thank you for supporting our newsletter. Each time a reader engages with our sponsor’s ad, this directly supports CFC’s mission to be the TOP FINANCIAL newsletter Beehiiv has to offer.
Even if you do not buy a product, subscribe, etc. this greatly supports our mission. Take 5 seconds today and check them out!
Find customers on Roku this holiday season
Now through the end of the year is prime streaming time on Roku, with viewers spending 3.5 hours each day streaming content and shopping online. Roku Ads Manager simplifies campaign setup, lets you segment audiences, and provides real-time reporting. And, you can test creative variants and run shoppable ads to drive purchases directly on-screen.
Bonus: we’re gifting you $5K in ad credits when you spend your first $5K on Roku Ads Manager. Just sign up and use code GET5K. Terms apply.
Veteran business owner? Take command of your cash flow and tighten your financial systems. Join The Profit Platoon — a community built for Veterans.
